Shinhan Bank Issues New Hybrid Capital Securities Worth 400 Billion Won

First Double-Digit Spread Issuance Success in the Banking Sector

Shinhan Bank announced on the 7th that it has issued KRW 400 billion worth of new KRW subordinated bonds (contingent capital bonds). These new subordinated bonds are perpetual bonds with a fixed interest rate of 4.63% and are callable after 5 years.

Shinhan Bank initially planned to issue new subordinated bonds worth KRW 270 billion, the amount registered in the initial securities registration statement, but due to strong interest and active participation from various institutional investors, effective demand reached KRW 739 billion (2.74 times), leading to an increase in the final issuance amount to KRW 400 billion.

Shinhan Bank explained that despite the recent high volatility and tightening concerns caused by global inflation indicators, the successful issuance of these new subordinated bonds confirmed strong investor preference and interest.

A Shinhan Bank official stated, “Despite a sharp rise in interest rates due to increased market volatility on the day of demand forecasting, we were able to attract participation from various institutions through active IR efforts, achieving a double-digit spread for the first time among commercial banks. Through this issuance of new subordinated bonds, Shinhan Bank’s capital adequacy ratio is expected to increase by 0.21 percentage points. We will continue to proactively expand our capital base and manage stable ratios to become a trusted top-tier bank.”

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